The collapse in forex trading can occur due to various factors. Lack of proper risk management can lead to substantial losses and financial instability. Inadequate knowledge and understanding of the market dynamics can also contribute to failure. Emotional decision-making, driven by fear or greed, can result in poor trade execution. In addition, relying on unreliable sources or tips without conducting thorough research can lead to detrimental outcomes. Insufficient capital or over-leveraging can amplify losses and lead to account depletion. Lack of discipline and consistency in following a trading plan can erode profitability. External factors such as global economic events, policy changes, or geopolitical instability can cause significant market volatility, resulting in losses for traders. Additionally, the absence of continuous learning and adaptation to changing market conditions can render traders ineffective. To avoid collapse, traders should focus on building a strong foundation through education, risk management, discipline, and staying informed. Adapting strategies, learning from mistakes, and developing a resilient mindset are crucial for long-term success in the forex trading industry.